Exicom Tele-Sys.

Exicom Tele-Systems reported standalone revenue of INR 151 crores for Q1 FY26, with an adjusted EBITDA of INR 12.6 crores (8.6% margin) and adjusted PAT of INR 1.1 crores (0.7% margin). This represents a 29% QoQ and 38% YoY decline in standalone revenue. Consolidated revenue stood at INR 205 crores, but adjusted EBITDA was negative INR 38 crores, and adjusted PAT was negative INR 71 crores, primarily due to losses from the acquired subsidiary, Tritium.

The standalone Critical Power revenue was INR 98 crores, and consolidated was INR 102 crores. This segment's performance was below expectations due to project-level delays, including Bharat Net and large lithium-ion battery upgradation projects, caused by approvals and monsoons. These deliveries are now set to contribute significantly to Q2 revenue. The company secured major export wins from the Middle East and Africa, which contributed 30% to the current quarter's revenue and are expected to boost export business this year.

The EV Charger business showed strong momentum, with standalone revenue of INR 53 crores, a 61% YoY growth compared to Q1 FY25. The company entered the electric trucking segment and secured an OEM win in the luxury car segment. Notably, Exicom signed a global framework agreement for EV Chargers in Southeast Asia (Malaysia, Indonesia, Thailand) and launched a new product, Harmony Gen 2, which has seen strong market response and customer adoption.

Exicom's order backlog is at its highest ever, exceeding INR 1,500 crores, with hardware supply orders alone exceeding INR 1,200 crores. This strong order book provides significant revenue visibility for future quarters. Management expressed confidence in converting this backlog into revenue, especially with the resolution of Q1 project delays and the upcoming commissioning of the Hyderabad plant.

The company successfully completed a rights issue of INR 260 crores, which was oversubscribed. Proceeds were used to repay INR 55 crores of unsecured debt, convert INR 107 crores of promoter loan into equity, and invest INR 85 crores in Tritium. This improved the debt-equity ratio from 0.7 to 0.35 and increased net worth to INR 910 crores. INR 35 crores of IPO funds were spent in Q1, with the remaining INR 108 crores to be utilized by September for the Hyderabad plant.

The integrated manufacturing plant in Hyderabad is in advanced stages of construction, with the start of production (SOP) targeted for October 2025. The full transition of production to this new facility is expected over the subsequent two quarters. Management anticipates the plant will operate at 70-75% utilization with its current machinery, enabling high-quality, lean-cost manufacturing and supporting future growth.

The turnaround of the acquired subsidiary, Tritium, is taking longer than expected, resulting in significant losses that impacted Exicom's consolidated adjusted EBITDA (minus INR 38 crores) and PAT (minus INR 71 crores). While Tritium's order book for its TRI-FLEX product is building, consolidated profitability is now guided for FY27, not FY26. Tritium also introduced a lifetime warranty on its power modules, a first in the industry, to boost customer confidence.